Moving the Goalposts

Economic Coordinating Minister Darmin Nasution has said the Constitutional Court’s ruling that prohibits the central government from annulling regional bylaws will affect the deregulation process and hinder investment.

“Of course, it will affect many things,” said Darmin on Thursday evening as reported by kontan.co.id,adding that the central government needed to scrap regional regulations that were not friendly to investors.

The Constitutional Court earlier this week upheld a challenge by the Indonesian Regency Administrations Association (Apkasi) against Article 251 of Law No. 23/2014 on regional administration that stipulates that the home minister has the right to review regional bylaws that contradict national laws and regulations.

The court held that the article contravened the Constitution and was not in line with the country’s legal system.

Darmin said the central government would still try to find a way to proceed with the deregulation process. “If this task can’t be done by the home minister, it is the President who will carry it out,” he added.

Usage of the AmCham Indonesia website states your compliance of our Terms of Use